Posted on: Wednesday, November 3, 2004

Maui L&P reports $2.1M loss in quarter

By Sean Hao
Advertiser Staff Writer

Maui Land & Pineapple yesterday said it lost $2.15 million, or 30 cents a share, during the third quarter as it spent heavily to develop hardier pineapples and shift production from canned to fresh fruit.

That compares with profits of $9.45 million, or $1.31 a share, in the year-ago quarter. Sales fell 31 percent to $34.73 million on lower revenue in the company's pineapple, resort, and commercial and property businesses.

During the three months ended Sept. 30 revenue from pineapple operations fell 26 percent to $19 million. Revenue from canned pineapple sales fell as the company continued a transition toward greater fresh fruit sales. Pineapple profits also were trimmed by higher costs from increased crop maintenance and seed development.

Maui Land & Pine said it is doubling annual investments in pineapple operations to $5.4 million this year to produce more consistent fruit with longer shelf life. Because it takes 18 to 23 months for pineapples to grow, the benefit from those investments won't be reflected until late 2005, the company said.

Among the company's other major businesses, resort revenue rose 4 percent to $11.4 million, while development revenue rose to $4.17 million, versus $166,000 in the third quarter of 2003.

Through the first nine months of 2004 Maui Land & Pine lost $3 million, or 42 cents a share.

Shares of Kahului-based Maui Land & Pine yesterday closed down 49 cents at $32.36 a share on the American Stock Exchange.

Reach Sean Hao at 525-8093 or shao@honoluluadvertiser.com.